Qatar is a very attractive country in which to do business.  However, you must have a Qatari sponsor in order to win or bid for any contract.  So whether you intend to have a permanent presence in the region, or bid for a one-off contract, you need to be under the sponsorship of a local person or company.

Doing business in a different country is a daunting task.  However, we believe that our ‘hand holding’ approach will take most of the anxieties out of the process for you.

There are some basic facts you need to be aware of.

If you want to have an office in Qatar then you will need to form a company.  Establishing an LLC  (Limited Liability Company,  sometimes termed, WLL, With Limited Liability Company) is the most popular form of company registration for a foreign company seeking a presence in Qatar.

In the majority of cases non-Qatari nationals are not permitted to own businesses outright, and a majority Qatari partner is required who will have a 51% stake of the company.

Even when ownership of a Qatar company is on a 49-51 percent basis, it is usually understood that the Qatari partner will not take a 51% share of the profits.

In Distinction, we understand that a flexible structure, which reflects the amount of work that both of our companies put into developing and creating new businesses, is the most equitable system.

Tax

Companies owned by foreign nationals must pay tax on their activities. Qatar companies do not pay tax, but foreign partners must pay tax on their share of the business.

GCC citizens and companies are treated as Qatari Nationals for the purpose of tax and therefore do not pay tax on their business activities.

Tax Declarations

Tax declarations have to be made within four months of the end of the financial year. Companies with profits exceeding QAR100,000 have to submit audited financial statements certified by a registered Qatar accountant to support their declaration.

Rates of Taxation in Qatar

Qatar Tax rates start at 10% of profits between 100,000 and 500,000 riyals and rise to a total of 35% for profits above 5,000,000 riyals.

Income Tax:

There is currently no taxation for employees on income tax.

At Distinction, we can assist you in providing legal and tax expertise to answer all your questions in these areas.

Sponsorship & Work Permits

All expatriate workers in Qatar require a residency permit and will need a Qatari sponsor to obtain a work permit.  This is a key part of our offering.